Bankrupt FirstEnergy unit aims to cut contracts with $1 bln in costs

A bankrupt subsidiary of utility FirstEnergy Corp could save more than $1 billion by shedding contracts to operate a power-generation unit at a coal plant in Pennsylvania, according to court papers filed on Sunday.

“Even considering various restructuring options, there is no realistic scenario in which the debtors can continue to perform under the lease agreements and not experience debilitating losses,” FirstEnergy Generation LLC President Donald Moul said in the papers.

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